CHAPTER TWO
REVIEW OF
RELATED LITERATURE
2.1 INTRODUCTIONS
Change
is the only constant thing in life, therefore, the environment in which
organizations operate is dynamic and such environmental dynamic make
organizations evolve changes in order to survive, change another management
philosophy of adaptation is also part of organization strategy. Managers must therefore
strategize their environment for opportunities to stay afloat.
Corporate
strategies are more often than not worked out to meet the challenges that beset
organization. Always devising strategies that will give organizations
differential edge is necessary. The definition and scope of corporate strategy
is being revised to the changing nature of corporate competitiveness, even as
the issue of the discussions on strategy and competitiveness (Belohlau, 2002)
there is, however, no gainsaying the
fact that quality revolution has long been embraced in the manufacturing and
production companies, but the reverse is the case in the service companies.
Reichheld, and Sasser(2003) asserted that the quality revolution is just coming into services, nothing that in recent years,
despite their good intentions, few service company executives have been able to
follow through in their commitment to satisfy customers.
According
to them, while the manufactures begin in the 1980’s to unravel the cost
implications of scrap keeps and rework and farmed adopted “quality” as the most
profitable way to run a business, services companies soon realized their own
kind of scrap head customers who will come back. Discovering that this too has
a cost, many service companies now strive for “zero defections” keeping every
customer in the company profitable serve. However, an operational style has
been strategized by business managers. The total quality management (TQM) strategy which is no more than “Engineering” out from
the start, the prospects or possibilities of disharmonies of internal conflicts and waste and tackled,
thus, creating a product process that
runs clean and smoothly. The first thing to get right in the service industry
is the human capital, the right people, the right management.
2.2 CONCEPTUAL FRAMEWORK OF THE STUDY
The
manufacturing sectors have defined total quality management in many ways.
According
to Stevenson and William (1936), define total quality management as the ability
of a product or service to consistently meet or exceed customer consistent
expectation. They also defined total quality management (TQM) as a philosophy
about quality that is intended to involve every on in an organization in quest
for quality, with customer satisfaction as the driving force.
He
described quality management in terms of a trilogy that consist of quality
planning quality control and quality improvement. According to Juran (1986),
quality planning is necessary to establish processes capable of meeting quality
standards, that quality control is necessary in order to know when corrective
action is needed and that quality improvement will help to find better ways of
doing things.
The
essence of Juran’s massage is the commitment of management to continuous
improvement.
According
to Solanke (1996), total quality
management is meeting customer’s
requirement, requirement that have been
discussed and agreed between the customer and the supplier. It could be
supplier of goods or supplier or services. She also defined total quality
management as practicing a philosophy of prevention rather than correction.
According
to Iyayi (1994), defines total quality management as both a route to philosophy
of excellence. He said that excellence in an organization means providing products
and services that have good qualities to a high degree.
According
to Arene (1995), total quality management is a comprehensive effort
involving everyone in an organization to
meet customers’ need and continuously
improving product and services.
According
to Gath (1996), defines total
quality as a strategic commitment
by top management to change its whole
approach to business to make quality a
guiding factor in everything it does,
while Deiming (2000) argues that quality should be aimed at the needs to the
customer, present and future.
Feigenbaum
defines quality as a tool composite products and service characteristics of
marketing, engineering manufacturer and maintenance through which the product
and service in use will meet expectation of the customer.
2.3 HISTORICAL BACKGROUND OF THE STUDY
Kia
auto Nigeria ltd was incorporated in 1977 as a private limited liability
company. It was established in pursuant to a joint venture agreement between
the Federal Government and the Diamler-Benz AG of Germany carries on the
business of manufacturing, assembly, importation and sale of CKD sets fore
Mercedes Benz commercial vehicles. Agricultural
tractors and cars as well as spare parts.
These
companies started production in early
1980’s with two basic model-IGN and in first year the company produced a
total of 795 vehicles, at present, the
models of trucks produced are MEL 711, L1418, MB308 sprinter van and actrs
20315, while thee model of buses are MBO 140, MBO 800, MBO 141SN, MED1721 and
MBO 400.
Apart
from the trucks, buses and cars the company also produce utility vehicles such
as MBL 418 troop carrier, MEL 24DB water tanker hire bed trailer, refuse
collection disposal vehicle, mobile clinic spatic tank emptier, ambulance etc.
The company provides spare parts and also
engaged in the repair of vehicles. Kia has its corporate headquarter at Lekki
express way, Lagos. It has a factor size of 330,000 square meter.
2.4 REVIEWS ACCORDING TO THE OBJECTIVES OF THE STUDY
Total
quality management- is an integrated organizational approach in delighting
customers both internal and external by meeting their expectations all the time
through everyone involved within the organization working on continuous improvement
in all products, services and process along with structural mythology.
2.4.1 THE APPROACHES OF KIA MOTORS TO TOTAL
QUALITY MANAGEMENT
Approaches
adopted by Kia motors total quality management are as follows:
a.
Quality
policy and mission statement has been definite, clear and easily understood by
the whole organization also written and
documented and provide rallying point, uniting people towards achievement of
total quality management goals has been communicated properly to one and all in the organization.
b.
Strategic framework for implementing total
quality management identified and assessed the degree of commitment, key
interests and listed down the long-term changes required as defined in the
objective of organization. TQM identified resources available and developed understanding of organizational
systems with quality system specifying system specifying top management commitment through quality
policies, awareness and participative wok environment by emphasis on customer oriented value, encouraging
quality commitment design action plans develop specific about future identified
key-issues and constraints on implementation, develop strategies for
implementing, identifying, allocating management, execute plans, build momentum
for change implement and monitor measure benefits in terms of increased
customer satisfaction review and reward.
c.
TQM,
have increased productivity and eliminates waste, reduce non-conformance,
optimize costs, increases the profitability, enrich potential employee’s life
and help the industry top meet its societal obligation (Solanke, 1996).
2.4.2 WHAT
ARE THE FACTORS AFFECTING TOTAL QUALITY MANAGEMENT ON THE PRODUCT PERFORMANCE
OF KIA MOTOR
1.
Performance measure: an indicator used to objectively measure the
degree to which a company has successfully implemented a TQM system.
2. Operate
quality control- a production strategy designed to ensure product quality
that involves one employee or a small group of employees responsible for all
aspects of making a product and ensuring product quality.
3. Operating cost- cost associated with
the management a dunning of company.
Companies seek to increase profit by decreasing operating cost.
4. Product
quality: the central aspect of a product that is determined by the consumer and includes attributes such as
safety, reliability, serviceability, at
tractability of product quality is
constantly changing consumer demands.
2.4.3 THE DEVELOPMENT PROCESS OF
TOTAL QUALITY MANAGEMENT
ISO 9000 is the
beginning of journey towards total quality management ISO 9001, 9002 and 9003
tools for total quality management business process re-engineering (BPR)
benchmarking, empowerment, mapping and integrating customer expectation into
various quality processes. Training for TQM fundamentals of TQM taught from top
to bottom and development quality depends on product quality.
Employee’s involvement
participation and teamwork (Iyayi, 1994).
2.4.4
WHAT ARE THE EXTENTS TO WHICH KIA MOTORS HAVE ACHIEVED THEIR TOTAL QUALITY MANAGEMENT OBJECTIVE?
They (Kia
motors) achievements are as follows;
i.
Customers
satisfaction, leadership quality policy, organizational structure, training for
total quality management, quality cost suppliers, selection and developing
employees involvement quality circles recognition and reward.
ii.
Product
quality productivity
iii.
They
also have achieved effective customer’s feedback and employee feedback mechanism.
TOPIC 1:
TOTAL QUALITY MANAGEMENT AS A CORPORATE STRATEGY FOR ORGANIZATIONAL GROWTH (A CASE STUDY OF KIA MOTOR MANUFACTURING COMPANY LAGOS)
TOPIC 2:
IMPACT OF TOTAL QUALITY MANAGEMENT ON PERFORMANCE OF NIGERIA BREWERY INDUSTRY
REFERENCE
1.
Juran,
J.C. (19860, Quality planning and Analysis; New York: McGraw Hill.
2.
Solanke
(1996), Total quality management as meeting customer’s requirement.
3.
Iyayi
(1994), Vision for Integrated Development: Total quality management another
building Block for the Economic future of Nigeria Lagos. Mac dignition ltd.
4.
Arena
(1995), Business Administration quality and Analysis.New York McGraw Hill.
5.
Maga,
E. U.L. (2000), A Manual of Corporate planning
and strategic Business policy
major Objective of Total Quality Management in Nigeria.
6.
Belohlaw,
J. (2002). Quality, strategy and competitiveness California management review,
special issues: T.Q.M., spring, vol 25 No 3.
7.
Derning,
W.C. (2000). Out of crisis, New York: MIT Press.
8.
Gathis,
G.F. (1996). Total quality management: A total management: Houston: Tris
Publishers.